Gold, silver rate today trade tepid amid US debt ceiling negotiations. Buy or wait?
Gold rate today has support placed at $1,975 levels whereas on MCX, the support is placed at ₹60,000 levels, say experts
PremiumGold and silver rate today is trading tepid as investors await outcome of the ongoing $31.4 trillion US debt ceiling negotiations. Gold future contract on Multi Commodity Exchange (MCX) for June 2023 opened higher at ₹61,498 per 10 gm levels but soon came under the sell off heat and pared all morning gains within few minutes of commodity market opening. Currently, gold price today on MCX is quoting ₹60,940 per 10 gm and it has made intraday low of ₹60,913 levels. In international market, yellow metal price is oscillating around $2,016 per ounce levels.
Silver rate today opened lower and went on to make intraday low of ₹73,149 per kg levels on MCX. In global market, silver rate today is around $24 per ounce levels.
US debt ceiling negotiation in focus
Speaking on why gold and silver rates are trading sideways, Anuj Gupta, Vice President — Research at IIFL Securities said, “Gold and silver prices are sideways as investors are awaiting outcome of the ongoing US debt ceiling talks."
Anuj Gupta said that whether US debt ceiling negotiations happen or not, gold and silver prices are expected to bounce back from its lows because we can expect only two outcomes from the negotiations — either debt ceiling acceptance of printing of the fresh US dollar. In both case, it would be negative for the US economy and hence, gold and silver investors have been advised to maintain ‘buy on dips’ strategy for short term.
Should you buy on dips?
On outlook for gold prices ahead, market expert Sugandha Sachdeva said, “Looking ahead, prices have stretched a bit and there is a minor resistance emerging around ₹61,500 per 10 gm and any breach of the same would mean an advance towards ₹62,500 per 10 gm mark in the coming days. Nonetheless, the price outlook remains positive in the short term as long as prices are holding above ₹59,500 per 10 gm mark or $1,975 per ounce on a closing basis."
“Immediate support for silver rests at $23 per ounce in international market whereas on MCX, it has strong support placed at ₹70,000 levels. On upper side, silver rate today has immediate resistance at $24 while on MCX the resistance lies at ₹75,000 per kg levels," said Anuj Gupta of IIFL Securities.
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before taking any investment decisions.
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